Knot rises after settlement seen likely in patent case | VailDaily.com
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Knot rises after settlement seen likely in patent case

Associted Press

NEW YORK – Shares of The Knot Inc. climbed Thursday, after the media and services company reported a 60-day stay in its litigation with WeddingChannel.com.It’s a move that may indicate the companies are working on a settlement, according to at least one analyst.The Knot, based in New York, provides members with wedding planning information, interactive tools and resources and wedding-related shopping. It also offers print publications and a book trilogy, and produces a televised documentary series.Stock of the company rose $2.21, or 19 percent, to $14.02 on the Nasdaq Stock Market. Thursday’s strongest level of $14.13 came close to the 52-week high of $14.39 set Oct. 24.There was a 52-week low of $5.94 on May 17.The Knot has been embroiled in a patent dispute with WeddingChannel.com since Sept. 2003, when the rival wedding planning site alleged the Knot violated its patents for gift registries.A trial was expected to begin in February – meaning the 60-day stay will prompt a delay.”We believe the stopping of the judicial proceeding one month before the scheduled trial indicates both parties have agreed to discuss settlement options,” wrote Roth Capital’s Parham Ghorban in a note.A spokeswoman for the New York-based Knot declined to comment on the stay.WeddingChannel, a closely held company with headquarters in Los Angeles, couldn’t immediately be reached for comment.Ghorban, who upgraded Knot to “strong buy” from “neutral” Thursday, said a settlement, should one appear, could have a significant impact on the Knot’s profits.”They are spending about 10 percent of their revenue per quarter on legal expenses,” he said. “That would go straight to their bottom line.”Vail, Colorado


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